Iowa Code » Chapter 537 — CONSUMER CREDIT CODE
Iowa Code

Iowa Code § 537.5201 (2026)

Effect of violations on rights of parties

✓ current as of July 2026
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1. a. The consumer, other than a lessee in a consumer rental purchase agreement, has a cause of action to recover actual damages and in addition a right in an action other than a class action to recover from the person violating this chapter a penalty in an amount determined by the court, but not less than one hundred dollars nor more than one thousand dollars, if a person has violated the provisions of this chapter relating to:

(1) Authority to make supervised loans under section 537.2301.

(2) Restrictions on interests in land as security under section 537.2307.

(3) Limitations on the schedule of payments or loan terms for supervised loans under section 537.2308.

(4) Attorney fees under section 537.2507.

(5) Charges for other credit transactions under section 537.2601.

(6) Disclosure with respect to consumer leases under section 537.3202.

(7) Notice to consumers under section 537.3203.

(8) Receipts, statements of account and evidences of payment under section 537.3206.

(9) Form of insurance premium loan agreement under section 537.3207.

(10) Notice to cosigners and similar parties under section 537.3208.

(11) Restrictions on rates stated to the consumer under section 537.3210.

(12) Security in consumer credit transactions under section 537.3301.

(13) Prohibition against assignments of earnings under section 537.3305.

(14) Authorizations to confess judgment under section 537.3306.

(15) Certain negotiable instruments prohibited under section 537.3307.

(16) Referral sales and leases under section 537.3309.

(17) Limitations on executory transactions under section 537.3310.

(18) Prohibition against discrimination under section 537.3311.

(19) Limitations on default charges under section 537.3402.

(20) Card issuer subject to claims and defenses under section 537.3403.

(21) Assignees subject to claims and defenses under section 537.3404.

(22) Lenders subject to claims and defenses arising from sales and leases, under section 537.3405.

(23) Door-to-door sales under section 537.3501.

(24) Assurance of discontinuance under section 537.6109.

(25) Prohibitions against unfair debt collection practices under section 537.7103.

(26) Failure to provide a proper notice of cure or right to cure under sections 537.5110 and 537.5111.

(27) Failure to provide a notice of consumer paper under section 537.3211.

b. With respect to violations arising from sales or loans made pursuant to open-end credit, no action pursuant to this subsection may be brought more than two years after the violations occurred. With respect to violations arising from other consumer credit transactions, no action pursuant to this subsection may be brought more than one year after the due date of the last scheduled payment of the agreement.

2. A consumer is not obligated to pay a charge in excess of that allowed by this chapter, and has a right of refund of any excess charge paid. A refund may not be made by reducing the consumer’s obligation by the amount of the excess charge unless the creditor has notified the consumer that the consumer may request a refund and the consumer has not so requested within thirty days thereafter. If the consumer has paid an amount in excess of the lawful obligation under the agreement, the consumer may recover the excess amount either from the person who made the excess charge or from an assignee of that person’s rights who undertakes direct collection of payments from or enforcement of rights against consumers arising from the debt.

3. If a creditor has contracted for or received a charge in excess of that allowed by this chapter, or if a consumer is entitled to a refund and a person liable to the consumer refuses \n Tue Dec 09 22:02:53 2025 Iowa Code 2026, Chapter 537 (58, 3) 55 CONSUMER CREDIT CODE, §537.5203\n\nto make a refund within a reasonable time after demand, the consumer may recover from the creditor or the person liable, in an action other than a class action, the excess charge or refund and a penalty in an amount determined by the court not less than two hundred dollars or more than two thousand dollars. With respect to excess charges arising from sales or loans made pursuant to open-end credit, no action pursuant to this subsection may be brought more than two years after the time the excess charge was made. With respect to excess charges arising from other consumer credit transactions no action pursuant to this subsection may be brought more than one year after the due date of the last scheduled payment of the agreement pursuant to which the charge was made. For purposes of this subsection, a reasonable time is presumed to be thirty days.

4. Except as otherwise provided in this chapter, no violation of this chapter impairs rights on a debt.

5. If an employer discharges an employee in violation of the provisions prohibiting discharge in section 642.21, subsection 2, paragraph “c”, the employee may within two years bring a civil action for recovery of wages lost as a result of the violation and for an order requiring the reinstatement of the employee. Damages recoverable shall not exceed lost wages for six weeks.

6. A person is not liable for a penalty under subsection 1 or 3 if the person notifies the consumer of an error before the person receives from the consumer written notice of the error or before the consumer has brought an action under this section, and the person corrects the error within forty-five days after notifying the consumer. If the violation consists of a prohibited agreement, giving the consumer a corrected copy of the writing containing the error is sufficient notification and correction. If the violation consists of an excess charge, correction shall be made by an adjustment or refund as provided in subsection

2. The administrator, and any official or agency of this state having supervisory authority over a person, shall give prompt notice to a person of any errors discovered pursuant to an examination or investigation of the transactions, business, records and acts of the person.

7. A person may not be held liable in any action brought under this section for a violation of this chapter if the person shows by a preponderance of evidence that the violation was not intentional and resulted from a bona fide error notwithstanding the maintenance of procedures reasonably adapted to avoid the error.

8. In an action in which it is found that a person has violated this chapter, the court shall award to the consumer the costs of the action and to the consumer’s attorneys their reasonable fees. Reasonable attorney’s fees shall be determined by the value of the time reasonably expended by the attorney and not by the amount of the recovery on behalf of the consumer. [C75, 77, 79, 81, §537.5201] 87 Acts, ch 80, §51; 2012 Acts, ch 1023, §157; 2017 Acts, ch 138, §20 Referred to in §85.27, 537.3205, 537.3304, 537.3309, 537.3501, 537.4101, 537.5110 \n

Notes of Decisions
Cited in 27 cases (1 in the last 5 years), 1979–2025 · leading case: Chrysler Fin. Co. v. Bergstrom, 703 N.W.2d 415 (Iowa 2005).
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Chrysler Fin. Co. v. Bergstrom, 703 N.W.2d 415 (Iowa 2005). · cites it 64× “See Iowa Code §§ 537.5201 -.5203 (2003). This appeal concerns a violation involving filing a lawsuit against a consumer in the wrong venue and the statutory defense that relieves the creditor of liability for the violation if the creditor shows the violation was unintentional…”
Monahan Loan Serv., Inc. v. Janssen, 349 N.W.2d 752 (Iowa 1984). · cites it 22× “It is not entirely clear whether the partial award of attorney fees to the defendants made by the trial court was based on a belief that the filing of the action in the wrong county did provide a basis for relief under section 537.5201 or whether it was based on defendants’…”
Pub. Fin. Co. v. Van Blaricome, 324 N.W.2d 716 (Iowa 1982). · cites it 8× “Section 537.5201(1) of the Code provides: The consumer has a cause of action to recover actual damages and in addition a right in an action other than a class action to recover from the person violating this chapter a penalty in an amount determined by the court not less than…”
Liles v. Am. Corrective Counseling Servs., Inc., 201 F.R.D. 452 (S.D. Iowa 2001). · cites it 4× “§ 1692k(a)(l), (2)(A), (3). The IDC-PA similarly provides for recovery of actual damages and, in an action other than a class action, damages of “not less than one hundred dollars nor more than one thousand dollars.”
Darla Legg & Jason T. Legg, on Behalf of Themselves & All Persons Similarly Situated v. West Bank, 873 N.W.2d 763 (Iowa 2016). · cites it 2× “West Bank argues that the Leggs’ usury' claims are subject to a one-year statute of limitations under Iowa Code section 537.5201(1). The bank argues that section 587.”
First Nat'l Bank of Creston v. Creston Implement Co., 340 N.W.2d 777 (Iowa 1983). · cites it 6× “In addition, Pilkington filed a counterclaim alleging that the failure to give such notice was a violation of the Iowa Consumer Credit Code which entitled him to recover statutory penalties and attorney fees from the bank in accordance with Iowa Code section 537.5201 (1981). The…”
Darla Legg & Jason T. Legg, on Behalf of Themselves & All Persons Similarly Situated v. West Bank, 873 N.W.2d 756 (Iowa 2016). · cites it 2× “One of the challenges West Bank made to the usury subclass arose under Iowa Code section 537.5201 (2009), part of the ICCC.”
Ryan v. Arneson, 422 N.W.2d 491 (Iowa 1988). · cites it 2× “2d 716, 726 (Iowa 1982) (attorney fees allowed on appeal concerning Iowa Code § 537.5201 (8)); City of Bettendorf v.”
IPALCO Employees Credit Union v. Culver, 309 N.W.2d 484 (Iowa 1981). · cites it 4× “Culvers prayed for actual damages and penalties, section 537.5201(1), and attorney fees and costs, section 537.”
Tim O'Neill Chevrolet, Inc. v. Forristall, 551 N.W.2d 611 (Iowa 1996). · cites it 2× “See Iowa Code § 537.5201 (8); Public Fin. Co.”
Luttenegger v. Conseco Fin. Servicing Corp., 671 N.W.2d 425 (Iowa 2003). · cites it 2× “And that by the terms of Iowa Code section 537.5201, the Lutteneggers and consumer loan subclass members were entitled to recover the unlawful charges collected.”
Nw. Bank & Trust Co. v. Gutshall, 274 N.W.2d 713 (Iowa 1979). · cites it 3× “As plaintiff does not controvert the fact of its noncompliance with the aforementioned sections, this case must be remanded for the award of appropriate damages to the defendant pursuant to § 537.5201, The Code. In conclusion, we hold: (1) the jurisdictional amount permitting…”
Show all 27 citing cases →
— Iowa Code § 537.5201(1) — 8 cases
Pub. Fin. Co. v. Van Blaricome, 324 N.W.2d 716 (Iowa 1982). “Section 537.5201(1) of the Code provides: The consumer has a cause of action to recover actual damages and in addition a right in an action other than a class action to recover from the person violating this chapter a penalty in an amount determined by the court not less than…”
Chrysler Fin. Co. v. Bergstrom, 703 N.W.2d 415 (Iowa 2005). “See Iowa Code §§ 537.5201 -.5203 (2003). This appeal concerns a violation involving filing a lawsuit against a consumer in the wrong venue and the statutory defense that relieves the creditor of liability for the violation if the creditor shows the violation was unintentional…”
Monahan Loan Serv., Inc. v. Janssen, 349 N.W.2d 752 (Iowa 1984). “It is not entirely clear whether the partial award of attorney fees to the defendants made by the trial court was based on a belief that the filing of the action in the wrong county did provide a basis for relief under section 537.5201 or whether it was based on defendants’…”
Darla Legg & Jason T. Legg, on Behalf of Themselves & All Persons Similarly Situated v. West Bank, 873 N.W.2d 763 (Iowa 2016). “West Bank argues that the Leggs’ usury' claims are subject to a one-year statute of limitations under Iowa Code section 537.5201(1). The bank argues that section 587.”
IPALCO Employees Credit Union v. Culver, 309 N.W.2d 484 (Iowa 1981). “Culvers prayed for actual damages and penalties, section 537.5201(1), and attorney fees and costs, section 537.”
— Iowa Code § 537.5201(1)(y) — 1 case
Capital One Bank (Usa), N.A. v. Randy Taylor (Iowa Ct. App. 2015).
— Iowa Code § 537.5201(3) — 1 case
Amended April 4, 2016 Darla Legg & Jason T. Legg, on Behalf of Themselves & All Persons Similarly Situated v. West Bank (Iowa 2016).
— Iowa Code § 537.5201(7) — 2 cases
Chrysler Fin. Co. v. Bergstrom, 703 N.W.2d 415 (Iowa 2005). “See Iowa Code §§ 537.5201 -.5203 (2003). This appeal concerns a violation involving filing a lawsuit against a consumer in the wrong venue and the statutory defense that relieves the creditor of liability for the violation if the creditor shows the violation was unintentional…”
Monahan Loan Serv., Inc. v. Janssen, 349 N.W.2d 752 (Iowa 1984). “It is not entirely clear whether the partial award of attorney fees to the defendants made by the trial court was based on a belief that the filing of the action in the wrong county did provide a basis for relief under section 537.5201 or whether it was based on defendants’…”
— Iowa Code § 537.5201(8) — 9 cases
Pub. Fin. Co. v. Van Blaricome, 324 N.W.2d 716 (Iowa 1982). “Section 537.5201(1) of the Code provides: The consumer has a cause of action to recover actual damages and in addition a right in an action other than a class action to recover from the person violating this chapter a penalty in an amount determined by the court not less than…”
Monahan Loan Serv., Inc. v. Janssen, 349 N.W.2d 752 (Iowa 1984). “It is not entirely clear whether the partial award of attorney fees to the defendants made by the trial court was based on a belief that the filing of the action in the wrong county did provide a basis for relief under section 537.5201 or whether it was based on defendants’…”
Nw. Bank & Trust Co. v. Gutshall, 274 N.W.2d 713 (Iowa 1979). “As plaintiff does not controvert the fact of its noncompliance with the aforementioned sections, this case must be remanded for the award of appropriate damages to the defendant pursuant to § 537.5201, The Code. In conclusion, we hold: (1) the jurisdictional amount permitting…”
Union Story Trust & Sav. Bank v. Sayer, 332 N.W.2d 316 (Iowa 1983).
IPALCO Employees Credit Union v. Culver, 309 N.W.2d 484 (Iowa 1981). “Culvers prayed for actual damages and penalties, section 537.5201(1), and attorney fees and costs, section 537.”
— Iowa Code § 537.5201(l) — 1 case
Chrysler Fin. Co. v. Bergstrom, 703 N.W.2d 415 (Iowa 2005). “See Iowa Code §§ 537.5201 -.5203 (2003). This appeal concerns a violation involving filing a lawsuit against a consumer in the wrong venue and the statutory defense that relieves the creditor of liability for the violation if the creditor shows the violation was unintentional…”
— Iowa Code § 537.5201(l)(c) — 1 case
Monahan Loan Serv., Inc. v. Janssen, 349 N.W.2d 752 (Iowa 1984). “It is not entirely clear whether the partial award of attorney fees to the defendants made by the trial court was based on a belief that the filing of the action in the wrong county did provide a basis for relief under section 537.5201 or whether it was based on defendants’…”
— Iowa Code § 537.5201(l)(y) — 1 case
Chrysler Fin. Co. v. Bergstrom, 703 N.W.2d 415 (Iowa 2005). “See Iowa Code §§ 537.5201 -.5203 (2003). This appeal concerns a violation involving filing a lawsuit against a consumer in the wrong venue and the statutory defense that relieves the creditor of liability for the violation if the creditor shows the violation was unintentional…”
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